Bank of America (BofA), the country’s largest
retail bank by assets (and meantime at least, by branches) is
set to announce a major cost-cutting programme, centred on its
retail banking operations.

BofA chief executive Brian Moynihan will
present analysts next week with details of a major cost-cutting
initiative as part of the lender’s “New BAC” turnaround
strategy.

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While US reports claim that BofA has cut at
least 6,000 jobs in the past year as part of its reorganisation
under Moynihan, in the year to 30 June, total staff numbers at BofA
actually rose, by a net 3,000 year-on-year to 287,839.

Now BofA may announce plans to shed up to
40,000 jobs, 1-in-7 of its workforce.

Although BofA ended the first half of the
current fiscal marginally ahead of JPMorgan Chase as the largest US
bank by assets (by $2.26trn to $2.25trn), Chase now ranks as the
largest US bank by deposits.

Chase ended the first half with total deposits
of $1.05trn to BofA’s $1.03trn.

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And while Chase increased its US branch
network in the year to 30 June by 3.5% (or a net 181 outlets) to
5,340 units, BofA shuttered 2.5% (or a net 158) outlets to end the
first half with 5,724 units.

Up to another 750 of BofA’s branches are
reportedly under threat of closure in the next few years.

BofA also faces by far the largest most
mortgage put-back claims of any of the big home US lenders. In
terms of mortgage market share, BofA now trails Wells Fargo.

Since the start of the year, BofA shares
have collapsed by more than 50% from $15 to $7.10. In terms of
market cap, BofA now ranks 4th in the US at around $71bn, behind
JPMorgan Chase (circa $125bn), Wells Fargo ($124bn) and Citigroup
($78bn).